diff --git a/go.mod b/go.mod
index 8a8952bf..bc058008 100644
--- a/go.mod
+++ b/go.mod
@@ -4,7 +4,7 @@ go 1.25.0
 
 require (
 	github.com/BurntSushi/toml v1.6.0
-	github.com/modelcontextprotocol/go-sdk v1.1.0
+	github.com/modelcontextprotocol/go-sdk v1.2.0
 	github.com/spf13/cobra v1.10.2
 	golang.org/x/term v0.38.0
 )
diff --git a/go.sum b/go.sum
index 76b6e1f9..d4752289 100644
--- a/go.sum
+++ b/go.sum
@@ -3,6 +3,8 @@ github.com/BurntSushi/toml v1.6.0/go.mod h1:ukJfTF/6rtPPRCnwkur4qwRxa8vTRFBF0uk2
 github.com/cpuguy83/go-md2man/v2 v2.0.6/go.mod h1:oOW0eioCTA6cOiMLiUPZOpcVxMig6NIQQ7OS05n1F4g=
 github.com/davecgh/go-spew v1.1.1 h1:vj9j/u1bqnvCEfJOwUhtlOARqs3+rkHYY13jYWTU97c=
 github.com/davecgh/go-spew v1.1.1/go.mod h1:J7Y8YcW2NihsgmVo/mv3lAwl/skON4iLHjSsI+c5H38=
+github.com/golang-jwt/jwt/v5 v5.2.2 h1:Rl4B7itRWVtYIHFrSNd7vhTiz9UpLdi6gZhZ3wEeDy8=
+github.com/golang-jwt/jwt/v5 v5.2.2/go.mod h1:pqrtFR0X4osieyHYxtmOUWsAWrfe1Q5UVIyoH402zdk=
 github.com/google/go-cmp v0.7.0 h1:wk8382ETsv4JYUZwIsn6YpYiWiBsYLSJiTsyBybVuN8=
 github.com/google/go-cmp v0.7.0/go.mod h1:pXiqmnSA92OHEEa9HXL2W4E7lf9JzCmGVUdgjX3N/iU=
 github.com/google/jsonschema-go v0.3.0 h1:6AH2TxVNtk3IlvkkhjrtbUc4S8AvO0Xii0DxIygDg+Q=
@@ -13,8 +15,8 @@ github.com/itchyny/gojq v0.12.18 h1:gFGHyt/MLbG9n6dqnvlliiya2TaMMh6FFaR2b1H6Drc=
 github.com/itchyny/gojq v0.12.18/go.mod h1:4hPoZ/3lN9fDL1D+aK7DY1f39XZpY9+1Xpjz8atrEkg=
 github.com/itchyny/timefmt-go v0.1.7 h1:xyftit9Tbw+Dc/huSSPJaEmX1TVL8lw5vxjJLK4GMMA=
 github.com/itchyny/timefmt-go v0.1.7/go.mod h1:5E46Q+zj7vbTgWY8o5YkMeYb4I6GeWLFnetPy5oBrAI=
-github.com/modelcontextprotocol/go-sdk v1.1.0 h1:Qjayg53dnKC4UZ+792W21e4BpwEZBzwgRW6LrjLWSwA=
-github.com/modelcontextprotocol/go-sdk v1.1.0/go.mod h1:6fM3LCm3yV7pAs8isnKLn07oKtB0MP9LHd3DfAcKw10=
+github.com/modelcontextprotocol/go-sdk v1.2.0 h1:Y23co09300CEk8iZ/tMxIX1dVmKZkzoSBZOpJwUnc/s=
+github.com/modelcontextprotocol/go-sdk v1.2.0/go.mod h1:6fM3LCm3yV7pAs8isnKLn07oKtB0MP9LHd3DfAcKw10=
 github.com/pmezard/go-difflib v1.0.0 h1:4DBwDE0NGyQoBHbLQYPwSUPoCMWR5BEzIk/f1lZbAQM=
 github.com/pmezard/go-difflib v1.0.0/go.mod h1:iKH77koFhYxTK1pcRnkKkqfTogsbg7gZNVY4sRDYZ/4=
 github.com/russross/blackfriday/v2 v2.1.0/go.mod h1:+Rmxgy9KzJVeS9/2gXHxylqXiyQDYRxCVz55jmeOWTM=
diff --git a/internal/cmd/root.go b/internal/cmd/root.go
index 017a5021..2ec495c5 100644
--- a/internal/cmd/root.go
+++ b/internal/cmd/root.go
@@ -16,6 +16,7 @@ import (
 
 	"github.com/githubnext/gh-aw-mcpg/internal/config"
 	"github.com/githubnext/gh-aw-mcpg/internal/logger"
+	"github.com/githubnext/gh-aw-mcpg/internal/mcp"
 	"github.com/githubnext/gh-aw-mcpg/internal/server"
 	"github.com/spf13/cobra"
 )
@@ -448,4 +449,5 @@ func SetVersion(v string) {
 	version = v
 	rootCmd.Version = v
 	config.SetGatewayVersion(v)
+	mcp.SetClientGatewayVersion(v)
 }
diff --git a/internal/mcp/connection.go b/internal/mcp/connection.go
index ff07f63e..a913a8c7 100644
--- a/internal/mcp/connection.go
+++ b/internal/mcp/connection.go
@@ -21,6 +21,17 @@ import (
 
 var logConn = logger.New("mcp:connection")
 
+// gatewayVersion stores the gateway version used in MCP client implementation
+// It defaults to "dev" and is set at startup via SetClientGatewayVersion
+var gatewayVersion = "dev"
+
+// SetClientGatewayVersion sets the gateway version for MCP client implementation reporting
+func SetClientGatewayVersion(version string) {
+	if strings.TrimSpace(version) != "" {
+		gatewayVersion = version
+	}
+}
+
 // parseSSEResponse extracts JSON data from SSE-formatted response
 // SSE format: "event: message\ndata: {json}\n\n"
 func parseSSEResponse(body []byte) ([]byte, error) {
@@ -76,7 +87,7 @@ type Connection struct {
 func newMCPClient() *sdk.Client {
 	return sdk.NewClient(&sdk.Implementation{
 		Name:    "awmg",
-		Version: "1.0.0",
+		Version: gatewayVersion,
 	}, nil)
 }
 
diff --git a/internal/server/transport.go b/internal/server/transport.go
index 97c2b547..f26994e8 100644
--- a/internal/server/transport.go
+++ b/internal/server/transport.go
@@ -4,6 +4,7 @@ import (
 	"context"
 	"log"
 	"net/http"
+	"time"
 
 	"github.com/githubnext/gh-aw-mcpg/internal/logger"
 	sdk "github.com/modelcontextprotocol/go-sdk/mcp"
@@ -97,7 +98,9 @@ func CreateHTTPServerForMCP(addr string, unifiedServer *UnifiedServer, apiKey st
 
 		return unifiedServer.server
 	}, &sdk.StreamableHTTPOptions{
-		Stateless: false, // Support stateful sessions
+		Stateless:      false,                                         // Support stateful sessions
+		Logger:         logger.NewSlogLoggerWithHandler(logTransport), // Integrate SDK logging with project logger
+		SessionTimeout: 30 * time.Minute,                              // Prevent resource leaks from idle connections
 	})
 
 	// Wrap SDK handler with detailed logging for JSON-RPC translation debugging